The Media Landscape – Netflix ($NFLX) & Disney ($DIS) – June 22, 2024
Netflix Houses
There were three Netflix expansion questions analysts have been asking for years. When will you introduce ads, when will you enter live sports and when will you go omni-channel? The ads and live sports questions have been answered with the new subscription tiers and purchase of NFL rights. Now its omni-channel plans are becoming clearer. Netflix plans to open two large “Netflix Houses” with experiential events and accommodations. Rumored attractions include a Squid Game replica of the Glass Bridge Challenge episode. In-person isn’t brand new to Netflix. It’s done some live plays and other small experiences around the globe like its Knives Out murder mystery party. This simply represents a larger push into the space.
The two planned destinations will fill currently vacant malls in the greater Dallas and Philly areas; they are tiny in size compared to Disney and Universal resorts. Still, if those two companies are any indication at all, this should be a positive financial driver for Netflix. The omni-channel leveraging of valuable IP has been the secret sauce of Disney and Universal for decades. The added consumer touch-points work to deepen the connection and relationship a fan has with a brand or character. Netflix has been missing that. Now? It’s plugging the gap.
Disney Content
The Acolyte’s (new Star Wars show) early reviews have been bad. Interestingly, Forbes and some other outlets are reporting large cohorts of “review bombers” dead set on bringing down the ratings. This appears to be anti-woke blowback as, incredibly, there are already 10,000 reviews on Rotten Tomatoes 3 episodes into the new season. The wildly popular Mandalorian show got 2,500 reviews during the entirety of its last season. I say this to point out how noisy the initial takeaway from the show has gotten. Let’s see what they have to say about how it drove streaming sign-ups during its next quarterly report.
Conversely, Disney’s Inside Out 2 movie is thriving at the box office. The film crossed $155 million in its opening weekend in the U.S. alone, which means the $200 million budget production will likely be very profitable. It should also be a great subscription driver for Disney+.
- Nielsen reported flat month-over-month Disney streaming viewing hours for May. Netflix fell a bit, Hulu fell a bit, and YouTube rose.
